Exchange Rate Calculator

The exchange rate between the British Pound (GBP) and the South Korean Won (KRW) has experienced notable fluctuations over the past few months, reflecting a dynamic interplay of economic factors and market sentiments. As of May 3, 2025, the GBP/KRW exchange rate stands at approximately 1,897.5, indicating a strengthening of the Pound against the Won compared to earlier periods.

Recent Exchange Rate Trends

In the first quarter of 2025, the GBP/KRW exchange rate exhibited an upward trajectory. On January 21, 2025, the rate was recorded at 1,764 KRW per GBP, marking the lowest point in the quarter. By March 21, 2025, the exchange rate had risen to 1,904.4 KRW per GBP, representing the highest value observed during this period. This increase of approximately 7.9% over two months underscores the Pound's appreciation against the Won.

Factors Influencing the Exchange Rate

Several factors have contributed to the observed movements in the GBP/KRW exchange rate:

• Economic Performance: The United Kingdom's economic indicators, such as GDP growth, employment rates, and inflation, have shown resilience, bolstering investor confidence in the Pound. Conversely, South Korea's economy has faced challenges, including trade imbalances and fluctuating export demands, which have exerted pressure on the Won.

• Monetary Policies: Divergent monetary policies between the Bank of England and the Bank of Korea have influenced currency valuations. The Bank of England's stance on interest rates and quantitative easing measures has impacted the Pound's strength, while the Bank of Korea's policy decisions have affected the Won's performance.

• Global Market Sentiments: Geopolitical events, trade negotiations, and global economic trends have also played a role in shaping the GBP/KRW exchange rate. Investor risk appetite and capital flows between the two countries have been affected by these broader market dynamics.

Historical Context

Looking back over the past year, the GBP/KRW exchange rate has demonstrated significant volatility. In April 2024, the rate reached a low of 1,694.5 KRW per GBP, while in March 2025, it peaked at 1,904.4 KRW per GBP. This range highlights the currency pair's sensitivity to both domestic and international economic developments.

Implications for Stakeholders

For businesses engaged in trade between the UK and South Korea, the fluctuating exchange rate necessitates strategic financial planning. Importers and exporters should consider hedging strategies to mitigate currency risk. Investors with exposure to GBP or KRW assets should stay informed about economic indicators and policy decisions that may impact currency valuations.

Conclusion

The GBP/KRW exchange rate's recent movements reflect a complex interplay of economic performance, monetary policies, and global market sentiments. As of May 3, 2025, the Pound's strength against the Won underscores the importance of monitoring economic developments in both countries. Stakeholders should remain vigilant and adaptable to navigate the evolving currency landscape effectively.